HCM City seeks Japan's ODA loans for two subways
29-APR-2008 Intellasia | Saigon Times Daily page 2
Apr 29, 2008 - 7:00:00 AM
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The HCM City government has sent a statement to Ministry of Planning and Investment, seeking to enrol two subway projects to the list of top-priority projects in using Japanese ODA loans this year.
An official of the municipal government confirmed with the Daily on Wednesday that the city wanted capital from Japan's official development assistance for two subway lines, namely Ben Thanh- Tham Luong and Ben Thanh -Mien Tay Bus Station.
The city also asked for support from the planning ministry in mobilising funds for the two projects. Besides, the city urged relevant agencies to hasten the preparation works and fulfil the detailed plans of these subway lines.
An official of the HCM City Management Authority for Urban Railways the project owner, told the Daily that two urban subway railroads, referred to as routes No.2 and No.3a, will have total length of27 kilometres. The city needs around US$1.25 billion for developing the Ben Thanh-Tham Luong while the route connecting the Mien Tay Bus Station, the latter alone requiring US$880 million.
The city government will use around US$330 million from its coffer for the two subways as counter capital. Construction on the two subways should be from 2009 to 2015.
In a 'statement in January, the prime minister agreed to add subway projects in HCM City into the priority list of projects to be financed by ODA loans this year and the next few years. Besides, the government leader also asked the city authorities to work closer with the Ministry of Planning and Investment to lobby for financial sources for these subway routes.
The prime minister's decision has helped the city to have a more active role in mobilising funds for the subway projects now that the State Budget and private enterprises could not afford the mammoth funds for these projects.
Under the city's development master plan to 2020, there will be six subway lines with a total length of 107km, which will need total investment capital of US$5-6 billion.
Besides, a survey has shown that the city's population would grow up to 13.5 million by then compared to 7.9 million now, putting the city under high pressure to bolster commuter transport service and minimise the use of individual vehicles.
HCM City has set a target for accelerating the development of mass rapid transit system in the next few years, aiming to increase their capacity from 10% of total transport demand now to 25% in 2020.
On February 21, the city started building a depot for the first subway linking Ben Thanh Market in the downtown area and Suoi Tien Park in District 9. The first subway, which requires nearly US$1.1 billion and stretch 19.7km, is funded by the Japanese ODA loan.
In an effort to speed up subway projects in Hanoi and HCM City, two largest economic hubs in Vietnam, the Vietnam Railway Administration is drawing up quality standards for subways in the country.
The standards will be based on international norms regarding construction, technology and equipment to ensure a smooth connection between subways which will be developed by different contractors and suppliers.
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